Notice of Funding Availability; Additional Payment to Approved Insurance Providers, 27433-27434 [2023-09203]

Agencies

• DEPARTMENT OF AGRICULTURE
• Federal Crop Insurance Corporation
• Risk Management Agency

[Federal Register Volume 88, Number 84 (Tuesday, May 2, 2023)]
[Notices]
[Pages 27433-27434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-09203]



[[Page 27433]]

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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

Risk Management Agency

[Docket No. FCIC-23-0002]


Notice of Funding Availability; Additional Payment to Approved 
Insurance Providers

AGENCY: Federal Crop Insurance Corporation and Risk Management Agency, 
U.S. Department of Agriculture (USDA).

ACTION: Notification of funding availability.

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SUMMARY: The Risk Management Agency (RMA), on behalf of the Federal 
Crop Insurance Corporation (FCIC), announces the availability of 
funding under the Additional Payment (ADD PAY) Program. The ADD PAY 
Program is a one-time additional payment to Approved Insurance 
Providers (AIP) administering eligible crop insurance contracts for 
2021 reinsurance year specialty crops. The total funding available for 
the ADD PAY Program is $25 million. Funding for the ADD PAY Program 
will be distributed to AIPs proportionally based on their respective 
liabilities for eligible crop insurance contracts for 2021 reinsurance 
year specialty crops.

FOR FURTHER INFORMATION CONTACT: David Zanoni; telephone: (816) 507-
9302; email: [email protected]. Persons with disabilities who 
require alternative means for communication should contact the USDA 
Target Center at (202) 720-2600 (voice and text telephone (TTY)) or 
dial 711 for Telecommunications Relay Service (both voice and text 
telephone users can initiate this call from any phone).

SUPPLEMENTARY INFORMATION: 

Background

    This document specifies the terms and conditions of the ADD PAY 
Program. The Risk Management Agency, on behalf of FCIC, will administer 
the ADD PAY Program. The ADD PAY Program will provide an additional 
payment to AIPs administering eligible crop insurance contracts for 
specialty crops for the 2021 reinsurance year.
    Funding is for the administration of crop insurance contracts for 
specialty crops for the 2021 reinsurance year.

Definitions

    ADD PAY means Additional Payment Program.
    Annual settlement means the settlement of accounts between the 
Company and FCIC for the reinsurance year, beginning with the October 
monthly transaction cutoff date following the end of the subsequent 
reinsurance year and continuing monthly thereafter, as necessary.
    A&O Subsidy means the subsidy for the administrative and operating 
expenses paid by FCIC on behalf of the policyholder to the Company for 
additional coverage level crop insurance contracts in accordance with 
section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(4)).
    Approved Insurance Provider (AIP) means a legal entity (also 
referred to in this document as ``the Company'') which has entered into 
a Standard Reinsurance Agreement (SRA) with FCIC for the applicable 
reinsurance year.
    Eligible crop insurance contract means an insurance contract with 
an eligible producer:
    (1) Covering an agricultural commodity authorized to be insured 
under the Federal Crop Insurance Act and approved for sale by FCIC,
    (2) With terms and conditions in effect as of the applicable 
contract change date,
    (3) That is sold and serviced in accordance with the Federal Crop 
Insurance Act, FCIC regulations, FCIC procedures, and the SRA, and
    (4) That has a sales closing date within the reinsurance year.
    FCIC means the Federal Crop Insurance Corporation, a wholly owned 
Government Corporation of USDA that administers the Federal Crop 
Insurance Program.
    Liability means your total amount of insurance, value of your 
production guarantee, or revenue protection guarantee for the unit 
determined in accordance with the Settlement of Claim provisions of the 
applicable Crop Provisions.
    Net book premium means the premium amount established by FCIC for 
eligible crop insurance contracts in accordance with section 508(d)(2) 
of the Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)), less any 
amount for A&O subsidy.
    Qualifying crop insurance contract means an eligible crop insurance 
contract for a 2021 reinsurance year specialty crop.
    Reinsurance year means the term of the SRA beginning July 1 and 
ending on June 30 of the following year and, for reference purposes, 
identified by the year containing June.
    RMA means the Risk Management Agency, USDA.
    Specialty crop means agricultural commodities described in section 
101 of title I of the Specialty Crops Competitiveness Act of 2004 (7 
U.S.C. 1621 note), including fruits and vegetables, tree nuts, dried 
fruits, horticulture nursery crops, and other crops listed on the RMA 
specialty crops web page at https://www.rma.usda.gov/en/Topics/Specialty-Crops.
    Standard Reinsurance Agreement (SRA) means the agreement between an 
AIP and FCIC by which the insurer transfers to FCIC certain liabilities 
arising from the insurer's sales of insurance policies in return for a 
portion of premium monies and administrative expense reimbursements.
    USDA means United States Department of Agriculture.

Eligibility for ADD PAY Program

    To be eligible for additional payment under the ADD PAY Program, 
the participant must be an AIP who administered one or more eligible 
crop insurance contracts for specialty crops for the 2021 reinsurance 
year. A complete list of the specialty crops eligible for the ADD PAY 
Program can be found on the RMA website at https://www.rma.usda.gov/en/Topics/Specialty-Crops.

Funding Available for ADD PAY Program

    The total funding available for the ADD PAY Program is $25 million. 
Funds from section 771 of the Consolidated Appropriations Act, 2023, 
(Pub. L. 117-328) will be used for the ADD PAY Program.

Calculating and Accounting ADD PAY Program Amounts

    The ADD Pay Program amount for each AIP will be equal to the 
difference between the amount to be paid pursuant to the SRA for 
qualifying crop insurance contracts and the amount that would be paid 
if such contracts were not subject to a reduction described in section 
III(a)(2)(G) of the SRA but subject to a reimbursement rate equal to 
17.5 percent of the net book premium.
    If the total additional payment sum of $25 million for the ADD PAY 
Program is reached or may be reached, the RMA Administrator will 
prorate ADD PAY amounts due so that a total of $25 million is paid. In 
such a case, funding for the ADD PAY Program will be distributed to 
AIPs proportionally based on their respective liability for qualifying 
crop insurance contracts.
    The ADD PAY Program will be administered based on the book of 
business at first annual settlement date for the 2021 reinsurance year. 
The payment will be final upon receipt and will not be altered based on 
any subsequent updates to premium or

[[Page 27434]]

liability of qualifying crop insurance contracts made after that date.
    Specifically, RMA will calculate the additional payment amounts 
under the ADD PAY Program as follows:
    (1) For each qualifying crop insurance contract subject to a 
reduction described in section III(a)(2)(G) of the SRA,\1\ calculate 
17.5 percent of net book premium;
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    \1\ See 2021 Standard Reinsurance Agreement at: https://www.rma.usda.gov/-/media/RMA/Regulations/Appendix-2021/21sra.ashx?la=en.
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    (2) If the result of (1) is greater than the actual A&O subsidy 
paid for the qualifying crop insurance contract:
    (a) Subtract the actual A&O subsidy paid from the result of (1);
    (b) Calculate total liability;
    (3) Sum the results of (2a) by AIP;
    (4) Sum the results of (3) across all AIPs;
    (5) If the result of (4) is less than or equal to $25 million, then 
pay each AIP their respective amount from (3);
    (6) If the result of (4) is greater than $25 million, then:
    (a) Sum the results of (2b) by AIP;
    (b) Sum the results of (6a) across all AIPs;
    (c) Divide (6a) by (6b) to establish each AIP's proportion of total 
liability;
    (d) Multiply $25 million by the result of (6c) for each AIP; and
    (e) Pay each AIP their respective amount from (6d).

Paperwork Reduction Act Requirements

    In accordance with the provisions of the Paperwork Reduction Act of 
1995 (44 U.S.C. chapter 35, subchapter I), the notice does not change 
the information collection approved by OMB under control numbers 0563-
0053.

Environmental Review

    The environmental impacts of this final rule have been considered 
in a manner consistent with the provisions of the National 
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations 
of the Council on Environmental Quality (40 CFR parts 1500-1508), and 
because USDA will be making the payments to producers, the USDA 
regulation for compliance with NEPA (7 CFR part 1b). As specified in 7 
CFR 1b.4, FCIC is categorically excluded from the preparation of an 
Environmental Assessment or Environmental Impact Statement unless the 
FCIC Manager (agency head) determines that an action may have a 
significant environmental effect. The FCIC Manager has determined this 
notice will not have a significant environmental effect. Therefore, 
FCIC will not prepare an environmental assessment or environmental 
impact statement for this action, and this notice serves as 
documentation of the programmatic environmental compliance decision.

Federal Assistance Programs

    The title and number of the Federal assistance programs, as found 
in the Assistance Listing,\2\ to which this document applies is 
10.450--Crop Insurance.
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    \2\ See https://sam.gov/content/assistance-listings.
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USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and USDA civil rights 
regulations and policies, USDA, its Agencies, offices, and employees, 
and institutions participating in or administering USDA programs are 
prohibited from discriminating based on race, color, national origin, 
religion, sex, gender identity (including gender expression), sexual 
orientation, disability, age, marital status, family or parental 
status, income derived from a public assistance program, political 
beliefs, or reprisal or retaliation for prior civil rights activity, in 
any program or activity conducted or funded by USDA (not all bases 
apply to all programs). Remedies and complaint filing deadlines vary by 
program or incident.
    Individuals who require alternative means of communication for 
program information (for example, braille, large print, audiotape, 
American Sign Language, etc.) should contact the responsible Agency or 
USDA TARGET Center at (202) 720-2600 (voice and text telephone (TTY)) 
or dial 711 for Telecommunications Relay Service (both voice and text 
telephone users can initiate this call from any phone). Additionally, 
program information may be made available in languages other than 
English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and 
at any USDA office or write a letter addressed to USDA and provide in 
the letter all the information requested in the form. To request a copy 
of the complaint form, call (866) 632-9992. Submit your completed form 
or letter to USDA by mail to: U.S. Department of Agriculture, Office of 
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410 or email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Marcia Bunger,
Manager, Federal Crop Insurance Corporation; and Administrator, Risk 
Management Agency.
[FR Doc. 2023-09203 Filed 5-1-23; 8:45 am]
BILLING CODE 3410-08-P